Relief for college students

Sen. Robert Menendez is among those leading the charge in Congress for bipartisan legislation aimed at reversing the punishing debt load being carried by many college students across the United States. We hope the effort is successful because students and parents who believe education is a ticket to the American dream are finding the dream imperiled.
The cost of many colleges has become so prohibitive that two-thirds of graduates leave school with debt. While college debt averaged $9,250 in 1993, it now averages $19,200.
Students who attend private colleges have an average debt of $30,367. Those who go on to medical or law school often find themselves carrying debt that runs into six figures.

The College Cost Reduction Act of 2007, which will make an additional $18.6 billion in financial aid available over the next five years, is a historic infusion of cash even more significant because it comes without new taxes. It's the largest investment in student financial aid since the GI Bill was signed by President Franklin Roosevelt in 1944 to help World War II veterans.
Money currently used to encourage private lenders to issue students loans will be diverted to direct aid, a far more efficient use of the money. Why pay Sallie Mae or Citibank -- both profit-making private lenders -- to give loans to students?
Essentially, the legislation increases Pell grants for poor families and lowers the interest on student loans for middle-class families while increasing the loan amounts.
Lenders would also be required to be more transparent, informing students that they are entitled to other loans at lower rates. Investigations of the private student loan industry have found that kids were taking out pricey private loans when they were eligible for federal loans at far lower interest rates.
If enacted and signed into law by President Bush, the bill would go a long way toward ensuring that those who want to attend college can do so without paying for that decision for years.